When it comes to outsourcing back office operations, the Philippines has emerged as the leading destination for businesses worldwide. Why? Let me answer that in this blog post; it might be an eye-opener for you. From cost savings to a skilled workforce, there are many reasons why global companies choose the Philippines for building their back-office teams.
Whether you’re a growing startup or an established company, building your back office team in the Philippines can help streamline your operations and drive significant growth.
We’ve had the pleasure of working with big logistics companies, accountancy firms, small service businesses, and e-commerce companies.
Let’s dive into why the Philippines is the best destination for offshore back-office teams.
1. A Highly Skilled Workforce
One of the main reasons for building a back office team in the Philippines is the country’s talented and educated workforce. Filipinos are well-known for their proficiency in English because it is one of the country’s two legal languages, making communication easy and seamless for businesses from English-speaking countries like the US, UK, and Australia.
Beyond language skills, the Philippines produces a large number of college graduates every year, many with degrees in business, accounting, IT, and other relevant fields. This ensures that your back office team will have the skills and expertise to handle complex tasks efficiently.
2. Cost-Effective Labor (You’ll save around 70-80% on employee costs)
Labor costs in the Philippines are significantly lower than in Western countries, but without compromising on the quality of work. This allows companies to maximize their budgets by hiring highly skilled professionals at a fraction of the cost they would pay locally.
Not only do you save on salaries, but you also avoid the overhead costs associated with hiring full-time employees, such as office space, equipment, and benefits. If you’re wondering whether it’s the right move for your business, why outsource your back office to the Philippines provides further insights into the financial advantages.
3. A Thriving BPO Industry
The Philippines has been a global leader in the Business Process Outsourcing (BPO) industry for over two decades. This means that businesses outsourcing to the country can benefit from a well-established infrastructure and a wealth of experience in handling back office processes.
The Philippines’ BPO industry is supported by government policies and initiatives that further encourage outsourcing and create a favorable business environment. So, when you choose to build a back office team in the Philippines, you’re partnering with a country that specializes in making outsourcing seamless and highly effective.
In fact, at BackOfficePhilippines.com, we’re on track to save companies over $100,000,000 this year in employee costs, and many of those companies who partner with us are small to medium-sized businesses in the USA and Australia, usually with 2-50 employees, including their local team.
4. Round-the-Clock Operations
Another major benefit of outsourcing to the Philippines is the time zone advantage. The Philippines is in a prime position to offer 24/7 support, allowing your business to operate around the clock.
For example, if your business is based in the US, having a team in the Philippines ensures that work continues even when your in-house team clocks out. This is particularly beneficial for customer support functions, which require ongoing availability. Learn more about how to build your customer support team in the Philippines to keep your customers happy, no matter the time of day.
5. Cultural Compatibility
Cultural compatibility is an important, yet often overlooked, aspect of outsourcing. Filipinos are known for their strong work ethic, adaptability, and dedication, making them ideal candidates for offshore back office roles.
The Philippines has a Western-influenced culture due to its history and exposure to global media. This means that workers in the Philippines are not only familiar with Western business practices, but they also understand the cultural nuances that can make communication smoother and collaboration more efficient.
6. Dispelling Outsourcing Myths
Outsourcing your back-office teams doesn’t have to be a leap into the unknown. There are plenty of myths surrounding back office outsourcing that prevent businesses from taking advantage of the opportunities it presents.
Worried about data security? Think that outsourcing means low quality? It’s time to challenge those misconceptions. Check out 7 back office outsourcing myths to debunk the most common fears and learn the truth behind the benefits of outsourcing.
7. Flexibility and Scalability
Outsourcing to the Philippines provides flexibility that traditional hiring models simply can’t match. You can scale your back office team up or down based on business demands, without the need for long-term contracts or expensive severance costs.
This scalability is especially useful for growing businesses that experience seasonal fluctuations or sudden growth spurts. You can ramp up your operations as needed, then scale back when demand slows down, ensuring you only pay for what you need.
Final Thoughts
The Philippines stands out as the best destination for offshore back office teams due to its skilled workforce, cost-effective labor, and supportive outsourcing infrastructure. Whether you’re looking to cut costs, increase productivity, or provide 24/7 support, the Philippines offers a robust solution for your back office needs.
If you’re ready to take advantage of these benefits, start today by learning how to build a back office team in the Philippines and see the positive impact it can have on your business.
